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Unions demand company repay over R7.5 million allegedly siphoned from salaries

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Unions in the private security sector picket outside the iMvula Group headquarters in Sandton. Photo: Rosetta Msimango
Unions in the private security sector picket outside the iMvula Group headquarters in Sandton. Photo: Rosetta Msimango

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Trade unions in the private security sector demand that iMvula Group return employees' medical fees that were allegedly unlawfully deducted from their salaries in the last 10 months.

The SA Transport and Allied Workers Union (Satawu) and other unions handed over a memorandum of demands at iMvula's head office in Woodmead, Sandton, on Tuesday after employees could not access healthcare services and other benefits, as the service providers had allegedly not been paid.  

Placard displaying CEO of iMvula Group, Peter Birch. Photo: Rosetta Msimango

National coordinator of Kungwini Amalgamated Workers Union (Kawu), Khumbulani Moyo said: 

They were deducting monies amounting to R150 for the previous years and they are still deducting R100 while they are not forwarding it to the relevant appointed service providers.

The memorandum was prepared by the National Union of Metalworkers of SA (Numsa), Satawu and Kawu. 

Moyo conceded that they demanded iMvula Group refund the money to the relevant service providers and register employees with proper medical insurance.

READ: Over R75 million fraudulently deducted from private security workers' salaries - unions

"We have given them seven days to reply. If they do not comply, we demand that the government terminate their contracts and we are also demanding an investigation of their directors because these monies are embezzled with a healthcare insurance provider," added Moyo.  

However, the legal aid adviser of iMvula, Paul Kruger, dispelled the fraudulent deduction allegations.

"The allegations are false because the benefit that is deducted is paid to the service provider."

The company’s regional operations manager, Phanuel Baloyi, received and signed the memorandum and agreed to respond within seven days.  

According to the memorandum, the National Bargaining Council for the Private Security Sector appointed Affinity Health through an open tender process to provide an uninterrupted integrated primary scheme to all the employees in the private security sector industry.

However, the unions alleged that salaries of unsuspecting security guards were being deducted under the façade of providing them with the same medical benefits provided by Affinity Health. 

Tapsosa accuses Numsa of pushing an agenda to maximise their profits  

Early this month, the Association of Private Security Owners of SA released a media statement alleging that Numsa had joined other unions to expose iMvula because their investment company had shares in Salt Employee Benefits and Affinity Health, which the council appointed.  

The statement said: 

It comes as no surprise to Tapsosa that Numsa will be at the forefront of this so-called expose, as this agenda fits perfectly with its strategy to maximise its profits by using the same benefits intended for members to enrich themselves through its investment company, which is a majority shareholder in Salt Employee Benefits that the bargaining council has unlawfully appointed, including Affinity Health.

Numsa's spokesperson Phakamile Hlubi-Majola rebutted this allegation, saying that it was not part of the bargaining council so it could not have appointed Affinity Health.  

READ: Half a million security guards may go on strike soon, unions warn

Hlubi-Majola told City Press: "Their allegations are completely ludicrous. They are an employer association representing security companies. They should assist us in making sure that these companies are compliant instead of making baseless threats and accusations." 

She went on further to say that Numsa Investment Company did not have shares in Salt Employee Benefits. In fact, it sold its shareholding over a year ago. 

"All that is included in that statement is nonsense. They must do the right thing and get the companies they represent to pay the benefits to workers," added Hlubi-Majola.  

Other demands in the memorandum include paying back the money that was unlawfully deducted from workers' salaries, which exceeds R7.5 million, and that iMvula should respect the main collective agreement.  


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